Showing posts with label Bolivia. Show all posts
Showing posts with label Bolivia. Show all posts

31 Dec 2008

2008: meeting the challenges; 2009: more of the same

It's probably not very hard to work out that one reason for my writing this blog is to raise the profile of our Com World Series suite of telecoms sector discussion/networking/exhibition events. However, were I to do nothing more than copy text from our marketing materials and paste it here, I daresay I would get bored even faster than anyone reading these entries. For me at least, it's been fun to look out for telecoms-related news and then relate it to accounts of the people we meet and the things we hear while creating and attending these gatherings.

Reading back over my posts, I do notice that the need to promote our conferences seems to lead to my adopting a fairly optimistic tone when describing developments in the emerging markets in which we, our delegates and sponsors/exhibitors do business.

I make no excuses for this. A big part of my team's work is to keep reminding telecoms tech vendors of the technology requirements of operators in higher growth markets. We then strive to persuade the vendors that two days at a Com World Series show, meeting representatives of telcos from all over the region it serves, represents a time-efficient and cost-effective route to market. It therefore comes naturally to us to be bullish about growth prospects in the parts of the world in which we connect vendors with their customers and prospective customers.

However, in order to do this, I don't believe we have to misrepresent the positive buzz we experience in our conference rooms and exhibition areas. As recently as Saturday last week, I noted the optimism expressed by speakers at this month's Middle East region Com World Series event in Dubai.

However, it would be remiss of me not to acknowledge that this has been a challenging year for many of the people with whom we engage worldwide. If I were to confine my reading to telecoms industry news sources, I might be seduced into thinking that the countries and regions in which our friends and partners work are places typified by glad tidings of subscriber growth and market liberalisation. Of course, it's not possible to keep an eye on these parts of the world without getting a wider sense of what life there is really like. By talking with telecoms people from around the world, I am fortunate enough to hear from primary sources about the more difficult aspects of living and working in their various home (and adopted) countries. This adds colour and detail to the items I see on the TV news. More importantly, I get to see sensible people who go about their business very effectively in challenging environments. Further, the efforts of these people are combining to catalyse positive change - I am thinking in terms of things like:
  • how telecoms services reaching the world's less advantaged people quickly improves and enriches their lives
  • microfinance initiatives, sachet pricing and other measures designed to make services more affordable
  • green power technologies and innovative backhaul solutions designed to get services into remote and often impoverished areas
In this final blog entry of 2008, then, I find myself reflecting on the signs of trouble in the world of which my globe-trotting makes me more aware.

A news item which resonated for me last week was one picked up by myriad telecoms blogs and news portals, orginiating, I believe from this Reuters report. This was widely covered, so I won't repeat every detail here. To summarise, the story concerns a Nokia store in India being attacked by protestors enraged by the fact that the handset maker's mapping software shows Indian-claimed Kashmir as being within the borders of Pakistan. I was immediately reminded of a similar problem experienced by the Com World Series team. Some time ago, brochures were designed to promote our annual India & South Asia region event. One graphic element of the brochure was a map of the region from which delegates were to be gathered. The designer unwittingly committed much the same faux pas with regard to Kashmir as Nokia's mappers seem to have done. A contact in India was kind enough to point this out before the brochures were put in the mail - but once they had been printed... you live and learn...

Last week's Reuters story notes that "political sensitivities are an increasing problem for map making software vendors - such as how to deal with disputed borders or even national claims on areas such as Taiwan or Cyprus", going on to add that "back in 2001, Panasonic had a 12 month ban import imposed on it for selling phones in China which listed Taiwan as a separate country on the internal phonebook."

Our business has faced more serious and more costly problems than that in 2008. For example, the 2009 iteration of the India & South Asia conference, which was meant to take place early in the new year, has been pushed back to May as a result of the recent terrorist attack on Mumbai, the host city for the event. This is not without precedent. Earlier this year, our East Africa Com event was shifted from Nairobi to Dar es Salaam as a result of the unrest in Kenya following on from the disputed election results of December 2007.

On my own travels, I was lucky enough to spend a couple of weeks roaming around South America this year, working to boost attendance at our annual Americas Com event. One stop on the tour was Bolivia, where I visited operators in two cities, Santa Cruz and Cochabamba. In both of these, we could not fail to notice signs of the differences over the exploitation of energy resources which underlie recurring political crises. My understanding is that there exists a resultant desire for greater autonomy for some of the country's regions. We saw a demonstration in one city and plenty of related grafitti in the other.

These observations notwithstanding, I am choosing to face 2009 with determination to overcome any obstacles to my own aims which created by economic turmoil and political conditions. This is made easier by the great spirit and good fellowship I find among many, many telecoms people worldwide who face far greater levels of challenge than I or my team ever have to detal with. On that note, I wish you all a Happy New Year.

5 Sept 2008

Millicom CEO: scale is not the key in Latin America, Africa


During the long run-in to next week's Americas Com conference in Rio de Janeiro, I naturally look fairly closely at the competitive landscape in most the countries of Latin America. In the mobile space, this can be summarised in many markets as a battle between varying combinations of three companies. Two of these are telecoms giants - America Movil and Telefonica. The third is a smaller business headquartered in Luxembourg, Millicom International Cellular.


Millicom, whose services across Latin America are branded Tigo, is present in El Salvador and Guatemala and Honduras, where its local operations are market leaders. In South America, the company is present in Bolivia, Colombia. and Paraguay. Millicom has the largest market share only in the last of these three South American markets.

Earlier this week, in an interview with Investor's Business Daily, Millicom CEO Marc Beuls denied that larger competitors enjoy overwhelming competitive advantages: "Size isn't a reason for any of our competitors to be more successful in these markets than us. In Latin America, we compete against two giants, America Movil and Telefonica. This industry has more to do with innovation and launching new products and services, not so much technology, because much of that is the same among operators."

Having visited two Tigo-branded cellcos' HQs back in April (in Paraguay and Bolivia), I was disappointed not to have secured the participation of either for next week's conference. Frankly, across the group (in Latin America, Africa and SE Asia) we find Millicom subsidiaries to be a little wary of speaking or otherwise having a very visible presence at our conferences. We hope to resolve that in 2009.
Beuls says that "it was only three years ago that we started focusing on Africa and began investing substantial amounts of money. We've been able to improve our market position in most markets, the only exception being Sierra Leone. In Ghana, our largest market in revenue, we're No. 2 out of four operators. We're No. 3 in Tanzania, with 22% share, and gaining ground on the two largest operators."
Noting Vodafone's move on the Ghanaian market, the interviewer asked Beuls whether bigger operators have an edge because they can purchase mobile phones in large volumes and sell them in retail stores priced as low as $20. Beuls responds: "We don't play the handset game. We don't sell any handsets in Africa. The handset supply is there. A lot of the phones you find at (retail) dealers are second-hand, used phones. You can get a mobile phone at any price, a used one for $10 or a new one for $200. There is no need to get involved in that part of the market, whereas in Latin America operators are involved in the phone business."
Buels was asked whether bigger groups enjoyed advantages around roaming. Zain's promotion of services across national boundaries was mentioned, something which is now more relevant for Millicom given the Kuwaiti-headquartered cellco's presence in some 15 African countries.

Beuls argues that in the prepaid segment in Africa there is not much value in roaming: "Those customers are not mobile, they're not traveling. Maybe they're going from town to town, but not out of the country."
I am not closely involved in our Africa-specific events. These are managed by my colleague Julie Rey. However, I am close enough to the action to say confidently that October's Africa Com conference in Cape Town looks set to be bigger, busier and more exciting than ever. I daresay some of the questions mulled over this week by Millicom's Beuls will be discussed on stage and offline at the event.

1 Sept 2008

Millicom 3G deployment announced across entire LatAm footprint


Telecoms.com, the leading news and opinion telecoms sector website operated by Informa Telecoms & Media, reports today that Millicom International Cellular plans to have launched 3G services in all of its Latin American markets by the end of this year. The mobile group, headquartered in Luxembourg has already launched 3G in Guatemala, Honduras and Bolivia. Launches in Paraguay (today), El Salvador (tomorrow) and Colombia (by the end of 2008) are all set to follow.

I had the pleasure of visiting two of Millicom's Tigo-branded operations while touring South America in April this year. In both Paraguay and Bolivia, I was struck by the very high visibility of the brand. I also learned a little about the Bolivian operation's WiMAX launch, but was in the country a little too early for the full commercial 3G deployment.

This recent announcement supports my personal belief that tech vendors looking to tap into major big CAPEX in Latin America will soon need to look beyond the strong growth story in mobile. Once 3G networks are rolled out across the whole region, I wonder which technology area will offer the best growth prospects. It was this line of thinking which prompted us to broaden the focus of our long established Latin America region conference and exhibition. What was once 'GSM Americas', is now a more holistic event in terms of welcoming every kind of telecoms service provider - fixed/mobile/integrated; traditional telecoms space/cable MSO/emerging forms of service provider.

This year's event is imminent. My team and I board the plane to Rio de Janeiro this Saturday in time to set up for next week's conference on 9-10 September. We'd love to see you there. If you represent any telecoms operator, we can still admit you free of charge. Register at:
www.ComWorldSeries.com/americas

20 Aug 2008

Looking forward to hearing more on IPTV from carriers in CEE and Latin America

I read a Telecom Asia piece on the train into London this morning, which mulls over the idea of whether IPTV poses more questions than it currently offers answers. The writer asks whether it is "a rewarding new category, like SMS, or a dazzling non-event like the videophone? Is it more vendor snake oil, or an important new product? Is it purely defensive or will it one day deliver real income? Will it be overtaken by YouTube and online TV? Does IPTV even matter?"

I am not close enough to the discussion to presume to offer any answers of my own here, but I'm looking forward to my team and I gleaning the views of telcos on two continents next month. The first opportunity to do so will be my own trip to Rio de Janeiro to host our annual Americas Com conference and exhibition, 9-10 September. Later the same month, we're hosting the CEE Com event in Prague (17-18 September). At both conferences, we expect there to be a lot of talk around IPTV. In both cases we've made the effort to confirm the participation of triple-players from the cable space as well as telco carriers rolling out IPTV services.

We ran the Latin America event under the 'GSM Americas' banner for more than a decade, taking full advantage of the regional boom in mobile services and the tech vendors' desire to assembe big crowds of cellular carrier execs under one roof on an annual basis. For reasons I discussed last week, we've felt for a while now that it's imperative for us to broaden the appeal, bringing on board representatives of the purely wireline businesses, execs from integrated operators (i.e. with both fixed line and mobile network assets/services) whose brief covers the whole business - as well as our loyal crowd of MNO people. Certainly in terms of signing up a speaker panel that reflects this diversity, we have been successful. So as well as hearing from MNOs such as Movistar Chile, Claro Brasil, Iusacell and Ancel, delegates will draw lessons from wireline businesses such as Ecuador's ETAPA, Colombia's ETB Telecom and Bolivian telecoms co-ops COTEL and COTECO.

Not a day passes without my receiving more news of IPTV licensing wrangles around South America. So I am pleased that a number of the presentations in Rio will bear down on the business models, technology choices, regulatory enablers/inhibitors and more. Notable talks focused on this area will come from Mexico's Alestra and a cabler from that country, Cablecom.

In Prague, we've dedicted a good chunk of both conference days to discussing IPTV and telco-media convergence more broadly. Speakers addressing these themes will include:

Forced to choose between attending the Rio and Prague events, I have had to book my ticket for Brazil for entirely sensible business reasons. Cynical readers might think that I am ducking out the European autumn just to enjoy a few days of the South America spring. The thought never crossed my mind. None of the pictures I plan to post here from Rio will be of beaches or tourist sites, I promise. I shall only show you images of a packed conference room and exhibition area.